CCI gives good watchtags for reversals.
A trend will usually end with a divergence of CCI with price, usually followed by a retest of low (or high), followed by CCI moving from outside the 100's to inside the 100's.
If CCI has reached extremes, e.g. -200, until you see a CCI divergence, most likely you have NOT yet seen the end (lower low, or higher high) of the trend. This is Jenner's Divergence Theorem, copyrighted. It does not apply after news events, but with study, it will be you strongest ally in determining whether a trend is finished.
If the upmove is powerful, and CCI moves directly from the divergence up through the zeroline, do not expect retesting of the low (or high) of the previous trend.
A trend will usually end with a divergence of CCI with price, usually followed by a retest of low (or high), followed by CCI moving from outside the 100's to inside the 100's.
If CCI has reached extremes, e.g. -200, until you see a CCI divergence, most likely you have NOT yet seen the end (lower low, or higher high) of the trend. This is Jenner's Divergence Theorem, copyrighted. It does not apply after news events, but with study, it will be you strongest ally in determining whether a trend is finished.
If the upmove is powerful, and CCI moves directly from the divergence up through the zeroline, do not expect retesting of the low (or high) of the previous trend.
评论:
I'd forgotten my own label, from 2010. Jenner's Divergence Corollary is a better description of this CCI behavior than Theorem.